GSK plc GSK reported third-quarter 2026 core earnings of $1.46 per American depositary share (ADS), which beat the Zacks Consensus Estimate of $1.40. Core earnings declined 1% year over year on a reported basis but rose 1% at constant exchange rates (CER), driven by higher sales in the quarter.
Quarterly revenues rose 4% on a reported basis and 5% at CER to $11.91 billion (£8.89 billion), driven by strong demand for HIV, oncology and respiratory medicines. Revenues beat the Zacks Consensus Estimate of $11.80 billion.
All growth rates mentioned below are on a year-over-year basis and at CER.
GSK’s Q3 Segmental Discussion
GSK reports under three segments — General Medicines, Specialty Medicines and Vaccines. While sales in the Specialty Medicines segment increased 15%, the Vaccines segment declined 2%. Sales in the General Medicines segment remained broadly stable year over year.
GSK's Specialty Medicines Aid Top Line
HIV Sales
HIV sales rose 10% to £2.12 billion in the third quarter, driven by strong patient demand for Dovato and the long-acting injectable medicines Cabenuva and Apretude. Favorable U.S. pricing and channel mix also supported growth in the reported quarter.
GSK generates the majority of its HIV sales from its dolutegravir franchise, comprising two-drug regimens — Dovato and J&J JNJ – partnered Juluca — and three-drug regimens — Triumeq and Tivicay.
Dovato sales rose 9%, while Juluca sales rose 10%. Cabenuva sales surged 35%, while Apretude revenues increased 21%. However, Tivicay sales declined 2%, while Triumeq fell 14%, reflecting pressure on mature products.
Oncology Sales
Oncology sales increased 23% to £622 million, primarily driven by growing demand for Jemperli and Ojjaara/Omjjara, alongside contributions from Blenrep.
Jemperli sales rose 19% during the third quarter, as strong growth continued in Europe and International, driven by launches and reimbursement expansion across markets. Growth in the United States was slow as new patient starts moderated.
Sales of the blood cancer drug Ojjaara/Omjjara rose 35%, primarily driven by strong patient uptake and continued commercial launches across Europe and international markets. U.S. volume growth was partly offset by ongoing pricing pressures.
However, Zejula sales declined 23% due to increased competition in Europe and significant volume reduction in the United States.
Blenrep sales remained flat at £50 million during the third quarter.
Respiratory, Immunology & Inflammation Sales
Respiratory, Immunology & Inflammation sales increased 21% to £1.14 billion, driven by Nucala, Benlysta and contributions from newly launched Exdensur.
Sales of the respiratory drug Nucala were up 18% during the quarter, mainly driven by strong performance across all markets, especially the United States, where the drug recently received label expansion in the COPD indication. This upside was partially offset by continued pricing pressures and channel mix impacts.
Sales of the immuno-inflammation drug Benlysta were up 17% in the quarter, reflecting strong volume growth across all marketed territories.
Exdensur generated £27 million in quarterly sales, up from £18 million recorded in the previous quarter.
GSK’s Vaccines Sales Decline
Vaccines sales declined 2% in the quarter as lower revenues from shingles, RSV and influenza vaccines more than offset growth in meningitis vaccines.
The decline in vaccine sales might have weighed on investor sentiment, resulting in the stock's fall in pre-market trading on Wednesday.
Year to date, shares of GSK have increased 6.6% compared with the industry’s rise of 6.1%.
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Shingrix sales fell 5% to £780 million, primarily reflecting lower sales in China, partly offset by favorable U.S. pricing and inventory movements.
Arexvy sales declined 24% due to lower U.S. market demand and prior-year returns adjustments. Influenza vaccine sales decreased 17%, reflecting competitive pressures and delayed deliveries.
However, meningitis vaccine sales rose 12%, with Bexsero increasing 4% and Menveo rising 14%.
GSK's General Medicines Remain Stable
General Medicines sales were broadly stable during the quarter as growth in Trelegy offset declines across other respiratory products.
Trelegy Ellipta sales increased 8% to £787 million, reflecting higher volumes and favorable U.S. pricing adjustments. Ventolin sales rose 17%, while Anoro Ellipta increased 1%.
However, Relvar/Breo Ellipta sales declined 12%, while Flixotide/Flovent plunged 24%. Seretide/Advair sales fell 4%, reflecting continued generic competition and pricing pressures.
GSK's Operating Expenses Rise
Core selling, general and administration expenses increased 1% to £2.16 billion, reflecting investments in new product launches, partly offset by productivity initiatives.
Core research and development expenses surged 22% to £1.87 billion, reflecting increased investments in oncology and other pipeline programs.
GSK 2026 Guidance Maintained
GSK reaffirmed its 2026 total revenue guidance, which it provided earlier this year. The company continues to expect sales to increase 3-5% during the year, expecting performance in the upper half of the range.
Core operating profit is expected to increase 7-9%, toward the upper half, while core earnings per share growth is projected at the lower half of the 7-9% range.
Specialty Medicines sales are expected to grow by a low double-digit percentage, while Vaccines sales should remain broadly stable or increase at a low single-digit rate. General Medicines sales are expected to decline by a mid- to low-single-digit percentage.
R&D is now expected to increase significantly ahead of sales as part of the company’s Accelerate Growth program, while SG&A is expected to be broadly stable. The adjusted tax rate is expected to be around 17.5%.
GSK also reiterated its outlook for 2031, expecting to generate sales of more than £40 billion with growth expected to accelerate after that.
As previously announced, GSK's Accelerate Growth program targets £1.9 billion in annualized savings by 2029, supporting R&D investment and operating margins ahead of the anticipated dolutegravir loss of exclusivity between 2028 and 2030.
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GSK’s Zacks Rank & Stocks to Consider
GSK currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are TG Therapeutics TGTX and Harmony Biosciences HRMY, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for TG Therapeutics’ 2026 earnings per share have risen from 92 cents to 94 cents, while estimates for 2027 have increased from $2.65 to $2.66 during the same time. TGTX shares have surged 89.4% year to date.
TG Therapeutics’ earnings beat estimates in one of the trailing four quarters, while missing the same on the remaining three occasions, with the average surprise being 184.65%.
Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have remained stable at $3.79, while estimates for 2027 have increased from $3.98 to $4.06 during the same time. HRMY shares have risen 1.4% year to date.
Harmony Biosciences’ earnings beat estimates in one of the trailing four quarters, while missing the same on the remaining three occasions, with the average negative surprise being 13.97%.
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This article originally published on Zacks Investment Research (zacks.com).